Phil Jackson and Knicks general manager Steve Mills were sitting around a table in a room inside the Garden where only important people are allowed.

A press conference announcing Jackson as the president of the Knicks had concluded about an hour earlier, giving the two leaders of the Knicks basketball operations a chance to exchange ideas.

Garden chairman and Knicks owner Jim Dolan watched the conversation from a distance and began to smile.

“I see this as being liberating,” he told The Post later. “I’m happy to be out of it.”

The man who owns the team wants to become just a fan again. During Tuesday’s much-anticipated press conference that launched the Knicks into a new era, Dolan said he “willingly and gratefully” gives Jackson full control of basketball decisions. It was one of the few things he didn’t read from a prepared statement.

No more perceived meddling, he promises. No more second-guessing; and no more stepping in to instigate trades. Sure, he’ll still check the money and sign the checks, but Dolan is trying hard to distance himself from making any basketball decisions.

“I’ve got these two guys doing this,” Dolan said, referring to Jackson and Mills. “I’ll still be involved from the chairman side. If they’re going to spend $150 million, I’m going to know about it. But they can do the job.”

We can only take Dolan at his word — though history says things might change. Donnie Walsh thought he had full control until Dolan stepped in to push the trade for Carmelo Anthony, and Mills thought he’d have a voice before being hushed by the secrecy of the Jackson negotiations.

The pessimist might suggest things may never be as amicable in the Knicks hierarchy as they were on Tuesday. We’ve witnessed the scene before. A press conference is called and a new coach or general manager is announced. Everybody holds a basketball and smiles for the cameras. A few years later another press conference is held and more promises are made.

But maybe Dolan has learned something over the near two decades of highs and mostly lows. Maybe more than anything, he respects Jackson and his 13 championship rings.

They first began their courtship during a holiday party in California held by music manager Irving Azoff. Dolan and Jackson chatted about basketball and the Knicks in a back room for the entire party.

“That’s where I really started to get an understanding of how smart his understanding of basketball is,” Dolan said. “I never heard anyone talk about basketball like he did.”

They met “four or five times” following that party to discuss Jackson’s potential interest in joining the Knicks. One meeting took place in Dallas; the others were in Los Angeles. Jackson coming to New York for a sit-down was not an option.

“I couldn’t have him here,” Dolan said. “There’s no way Phil Jackson is going to walk into this city and not have the city know about it.”

A coaching role was ruled out largely because of Jackson’s health issues. But he made known his interest in a front-office job about three weeks ago. A verbal agreement was reached 10 days ago and a five-year contract worth an estimated $60 million was signed on Friday.

Azoff worked with a Los Angeles-based attorney to broker the deal on behalf of the Knicks, who worked hard to keep the discussions secret.

“I felt the negotiations if they were conducted between New York and L.A., I was worried they would blow up,” Dolan said.

Jackson talked on Tuesday about changing the culture of the Knicks and promised to be accessible. That would be in contrast to the current climate where Mills wasn’t allowed to speak to the media for much of this season. For now, Jackson won’t be muzzled.

“The only thing I’ll say is try to be fair and honest with him,” Dolan said.

From Eddy Curry to Larry Brown to Amar’e Stoudemire, the Knicks have thrown big money at big names before without much success. Dolan makes no apologies for that, but says of Jackson, “It’s not a public relations play, I’ll tell you that. It’s a sincere effort — as it’s been all along the way — to try and win.”

Dolan sounds sincere about staying out of the way. The owner just wants to be a fan. At least for now.